Skyworks Solutions, Inc.

Good afternoon and welcome to Skyworks Solutions' first quarter fiscal year 2022 earnings call. This call is being recorded. At this time, I will turn the call over to Mitch Haas, Investor Relations for Skyworks. Mr. Haas, please go ahead.

Thank you, Rachel. Good afternoon, everyone, and welcome to Skyworks' first fiscal quarter 2022 conference call. With me today are Liam Griffin, our Chairman, CEO, and President, and Chris Senesal, our Chief Financial Officer. Before we begin, I would like to remind everyone that our discussion will include statements relating to future results and expectations that are or may be considered forward-looking statements. Please refer to our earnings release and recent SEC filings, including our annual report on Form 10-K, for information on certain risks that could cause actual outcomes to differ materially and adversely from any forward-looking statements made today. Additionally, the results and guidance we will discuss include non-GAAP financial measures consistent with our past practice. Please refer to our press release within the investor relations section of our company website for a complete reconciliation to GAAP. With that, I'll turn the call to Liam.

Thanks, Mitch, and welcome everyone. Skyworks delivered a strong start to the fiscal year, establishing all-time quarterly records for revenue and free cash flow. Looking at the quarter in more detail, We delivered revenue of $1.51 billion above consensus and up 15% sequentially, demonstrating the strength of our broadening product portfolio. Specifically, the mobile business grew 12% sequentially, driven by increasingly complex architectures in 5G phones at our largest customer and momentum across the Android ecosystem. In parallel, our broad markets business achieved a record $477 million in the quarter, up 23% sequentially and 46% year over year. Our growth was fueled by both the continued adoption of our solutions across 5G, IoT, automotive, and wireless infrastructure, and an expanding set of new customers and markets from our recently acquired INA business. Importantly, Skyworks continues to drive strong profit margins and exceptional cash flow. We achieved gross margin of 51.2% and operating margin of 38.8%. We posted earnings per share of $3.14 above consensus and up 20% sequentially. Finally, we generated record Q1 operating cash flow of $582 million. As our first quarter results illustrate, the growth trajectory we established in fiscal 2021 is extending into fiscal 2022. We continue to see deployments accelerating, with 5G cellular subscriptions predicted to grow from 700 million today to more than 4.4 billion by the year 2027. As connectivity becomes more vital to the ways we work, educate, and play, Devices are increasingly integrating 5G with advanced Wi-Fi, precision GPS, Bluetooth, Zigbee, and other wireless protocols, creating the seamless and ultra-fast experience demanded by our customers. The rapid adoption of new wireless technologies enables a proliferating set of use cases, with design wins spanning mobile and broad markets, further bolstered by contributions from our recently completed acquisition. Specifically in mobile, we shipped Sky-5 platforms across leading smartphone OEMs, including Samsung, Oppo, Vivo, and Xiaomi, among others. In enterprise and IoT, we supported Wi-Fi access points at Siemens, powered Netgear's latest Wi-Fi 6 and 6E mesh system, partnered with British Telecom to launch 5G home routers, ramped Wi-Fi 6 and 6E modules at Juniper Networks and Telus, and provided digital isolation solutions for GE consumer appliances. Moving to automotive, we leveraged Sky5 technology to enable telematics, security, driver assist, and other advanced services at leading OEMs. We scaled volume production of timing and isolation products, enabling the leading EV manufacturers. And finally, across the infrastructure and industrial space, we captured design wins at QuickTel for enterprise M2M platforms, delivered industrial IoT solutions to ITRON, Honeywell, and Talus, supporting smart energy and factory automation. We also expanded our position in timing applications at the top five data centers. And as markets evolve, we expect to deploy billions of wireless devices. capitalizing on a strong multi-year growth trend. Advances in cloud and edge computing, autonomous vehicles, and factory automation, together with the emergence of the metaverse, we are intensifying the burden on existing networks, catalyzing demand for our highly integrated and customized platforms. From inception, Skyworks has been a driving force empowering the wireless network revolution. connecting people, places, and things. We invested early and extensively to develop and fabricate cutting-edge technology at massive scale. Today, we're a global leader, providing the essential elements required to deliver the highest performance connectivity platforms in the industry, producing billions of units, integrating core technology nodes, including gallium arsenide, Vulcan surface acoustic wave, as well as the most advanced multi-chip module test and assembly capabilities in the world. Underpinned by this powerful foundation, we are leading the transition of 5G, inspiring a new era of unrivaled innovation. The strength of our balance sheet and consistent outperformance demonstrates the significant value of our vertically integrated model and the compelling advantages it delivers. Looking forward, we are committed to supporting the strategic investments in technology, product development, and world-class manufacturing scale to further extend our market leadership. With that, I will turn the call over to Chris.